INFORMATION SYSTEM PROJECT INITIATION

IS Project Requests (reasons, sources)Project Review and SelectionPreliminary InvestigationRequirements Determination

Requirements anticipationRequirements investigationRequirements specification

Information System Project Requests

Reasons for project proposal

Capability: greater processing speed, increased volume, faster information retrieval.

Control: greater accuracy and consistency, better security.

Communication: enhanced communication, integration of business areas.

Cost: monitoring, reductionCompetitive Advantage: lock-

in customers, lock-out competitors, improve arrangements with suppliers, new product development.

Sources of project requests

Department Managers: to solve a problem or improve efficiency within the department.

Senior Executives: broad, institutional projects.

System Analysts: improvement of existing applications or projects for the systems dept.

Outside Groups: government, ISO.

Project Review and Selection

MethodSteering CommitteeUpper Management (Executive VP,

VP Manufacturing)Departmental Managers

(Marketing, Accounting)Technical Managers (R&D, QC)Information Systems Group (DP

manager, Senior Analyst)

Information Systems Committee

User-Group CommitteeManagement Planning

Committees

Integrating the Applications Portfolio

Horizontal Integration spans functional business areas

Vertical Integration links applications up and down the management hierarchy within specific business functions

Physical Integration: spans geographic boundaries

External-to-internal Integration brings outside data sources into the company as well as communication with entities such as customers, suppliers.

Preliminary Investigation Evaluation of project requests

Objective Orientation (New Systems) Start with objectives Convert objectives to

responsibilities Decisions to carry out

the responsibilities Information needs to

make these decisions (CSF, BSP)

Problem Orientation (Modification of existing system) Focus on problems Decisions necessary to

solve the problems Information needs to

make these decisions

Preliminary Investigation IS Performance Criteria

Company Objectives • Finance objectives• Manufacturing

objectives• Marketing objectives

President’s Info Needs• VP Finance info

needs• VP Manufacturing

info needs• VP Marketing info

needs

IS Performance Criteria• Financial IS

performance criteria• Manufacturing IS

performance criteria• Marketing IS

performance criteria

12 % ROI

$ 25 million sales revenue; operating expenses under $1.2 million

Periodic sales and expense reports

Provide a monthly expense report that compares actual with budgeted expenses for each operating unit

Preliminary Investigation Evaluation of project requests

1. Recognise the problem

2. Define the problem

3. Set system objectives

4. Identify system constraints5. Conduct feasibility study

6. Prepare project proposal

7. Approve disapprove

8. Establish control mechanism

Executive VP, functional VP, managers VP Information Services, (CIO), IS staff

SUPPORT

Preliminary Investigation Evaluation of project requests

Define the problem step 2 (Clarify and understand the project request): What is required? Why? What management levels are involved? Which functional areas? Which subsystems are deficient?

Separate symptoms from causes.

Determine the size of the project: New development or modification? Time Number of people

What is the problem? Inventory records are frequently inaccurate, causing

shortages at manufacturing time and variances in cost of goods sold.

Details of problem Quantity on hand and actual physical count records do not

always agree – no pattern is evident. Sometimes quantity on record is high and other times it is low. The quantity should always agree if material requisitions are posted properly. The two buyers usually ensure that enough material has been ordered and delivered on time.

How significant is the problem? The shortage causes major problems. Sometimes we even

have to shutdown lines until emergency reorders are filled. The controller objects when costs become excessive at end of month. The inventory manager complains when books are out of agreement with the on-hand actuals.

Preliminary InvestigationClarify and understand the project request

What does user feel is the solution? We need to automate receiving, withdrawal, inventory

records, and posting to eliminate arithmetic errors. How will information systems help?

Cut down on arithmetic errors; also provide quicker information.

Who else knows about this and could be contacted? Controller Buyers Manager of Inventory

Signed by Manufacturing Manager

Preliminary InvestigationClarify and understand the project request

Preliminary Investigation Evaluation of project requests

Set system objectives step 3 (functional VPs)) All IS objectives should help firm to achieve its

objectives Lower level objectives must support higher level

objectives Objectives should be valid (steer firm in the

direction it wants to go) Objectives should be realistic, yet stimulate

improvement Objectives should produce measurable standards

Preliminary Investigation Evaluation of project requests

Identify system constraints step 4 to minimise modifications later on.

Constraints imposed by the environment (government regulations ex. tax reporting; customers)

Internal constraints (cost and time limits, expertise)

Preliminary InvestigationEvaluation of project requests

Conduct feasibility study step 5operational: support from users and management for current

system, their involvement in project request, external and internal system constraints, major barriers to implementation.

technical: does the company have the necessary technology, equipment capacity for new system, adequate response time for number and location of users, data security?

financial: estimation of cost of development, hardware, software, benefits in terms of reduced costs or fewer errors, cost if nothing changes.

Project must be feasible operationally and technically as well as financially.

legal: will the system operate within legal and ethical boundaries?

Preliminary InvestigationEvaluation of project requests

Prepare project proposal step 6: written report of findings and recommendations to committee (by systems staff). (Committee approves/disapproves step 7; establishes control mechanism for project step8)

Introduction –reason for proposal Problem definition Possible alternatives Recommended course of action

Tasks to be accomplished Resource requirements Time Cost

Anticipated results (organizational, operational, financial impact)

General implementation plan Project objectives (tasks, budget) Summary

System Development Life Cycle

Requirements Determination (Systems Analysis)

Requirements anticipation Requirements investigation Requirements specification

System Design General system design Design of output, input, data base

System Development (software, hardware)Implementation and Evaluation

Training and other implementation activities Conversion Postimplementation review and maintenance

Requirements Determination

Study of the current system to find out how it works and where improvements should be made

1.Requirements anticipation: initial preparation to determine possible needs (in terms of functions, business processes). • The basis of anticipation is the project request

(reasons, justification), and the results of the preliminary investigation (causes).

2.Requirements investigation3.Requirements specification

Requirements investigation

Understand the main business processes

Identify the data used and info produced

Determine frequency, time and volume

Identify controls

what is the purpose of the activity? what steps are performed? where are they performed? who performs them? who uses the resulting information?

inputs and outputs of each business process

how often (trigger)? how long does it take? number of transactions?

are there any specific performance standards?

who compares actual versus standard? how are mistakes caught? how are errors handled? are errors excessive?

Requirements specification

Transition from analysis to design

• Capacity• Control• Accessibility• Complexity

Requirements specification

Capacity People Equipment Space Procedures

increase capabilities lower expectations redefine nature of

tasks

Requirements specification

Control of deviations, missing activities, handling of unanticipated events. procedure control content control to ensure that data

entering the system is correct (input validation)

audit control responsibility control

*

Requirements specification(Control continued)

Control procedure control are

all steps in a process performed? properly? any extra unauthorised steps? duplicate activities? will management know if steps are not performed?

content control to ensure that data entering the system is correct (input validation)

*

Requirements specification(Control continued)

Control audit control record

of a transaction; who performed it? when? what results did it produce?

responsibility control is anyone assigned to oversee the achievement of specific performance levels? are these levels vague?

design to avoid control problems

design to detect and report control problems

design to detect and fix control problems

Requirements specification

Accessibility : does the information exist? is the info available? reliable? retrievable? presentable? is there a procedural problem to access it?

Complexity

eliminate the need for info (purchase orders issued automatically without user intervention; built in default options)

ease access to info: streamline commands; default alternatives

eliminate the need for processing

change method of presentation

simplify partition resequence